Encompass Health Corp (EHC)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 864,500 | 731,800 | 627,900 | 822,800 | 661,900 |
| Total assets | US$ in thousands | 6,534,700 | 6,102,400 | 5,636,500 | 6,864,900 | 6,445,900 |
| Operating ROA | 13.23% | 11.99% | 11.14% | 11.99% | 10.27% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $864,500K ÷ $6,534,700K
= 13.23%
To analyze Encompass Health Corp's operating return on assets (ROA) over the period from December 31, 2020, to December 31, 2024, we observe a generally positive trend. The operating ROA increased gradually from 10.27% in 2020 to 13.23% by the end of 2024.
This improvement indicates that Encompass Health Corp has become more efficient in generating operating income relative to its assets over the period. The upward trajectory of the operating ROA suggests that the company has been able to increase its operational profitability and efficiency in utilizing its assets.
Overall, the consistent growth in operating ROA reflects positively on the company's operational performance and asset management efficiency, signaling a strengthening financial position and potential for sustained profitability in the future.
Peer comparison
Dec 31, 2024